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On Spatial Heterogeneity in Environmental Compliance Costs

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  • Randy A. Becker

Abstract

This paper examines the extent of variation in regulatory stringency below the state level, using establishment-level data from the U.S. Census Bureau’s Pollution Abatement Costs and Expenditures survey to estimate a county-level index of environmental compliance costs. County-level variation is found to explain 11 to 18 times more of the variation in environmental compliance costs than state-level variation alone, and the range of environmental compliance costs within a state is often large. At least 34% of U.S. counties have environmental compliance costs that are statistically different from their states’. Results suggest that important spatial variation is lost in state-level studies of environmental regulation.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 87 (2011)
Issue (Month): 1 ()
Pages: 28-44

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Handle: RePEc:uwp:landec:v:87:y:2011:i:1:p:28-44

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Web page: http://le.uwpress.org/

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  1. Randy Becker & Vernon Henderson, 2000. "Effects of Air Quality Regulations on Polluting Industries," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 108(2), pages 379-421, April.
  2. Arik Levinson, 2001. "An Industry-Adjusted Index of State Environmental Compliance Costs," NBER Chapters, National Bureau of Economic Research, Inc, in: Behavioral and Distributional Effects of Environmental Policy, pages 131-158 National Bureau of Economic Research, Inc.
  3. Carlo Carraro & Gilbert E. Metcalf, 2001. "Behavioral and Distributional Effects of Environmental Policy," NBER Books, National Bureau of Economic Research, Inc, National Bureau of Economic Research, Inc, number carr01-1.
  4. Eli Berman & Linda T.M. Bui, 1998. "Environmental Regulation and Productivity: Evidence from Oil Refineries," NBER Working Papers 6776, National Bureau of Economic Research, Inc.
  5. Becker, Randy A., 2005. "Air pollution abatement costs under the Clean Air Act: evidence from the PACE survey," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 144-169, July.
  6. List, John A. & Co, Catherine Y., 2000. "The Effects of Environmental Regulations on Foreign Direct Investment," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 1-20, July.
  7. Wolfgang Keller & Arik Levinson, 2002. "Pollution Abatement Costs and Foreign Direct Investment Inflows to U.S. States," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 691-703, November.
  8. Randy A. Becker & J. Vernon Henderson, 2001. "Costs of Air Quality Regulation," NBER Chapters, National Bureau of Economic Research, Inc, in: Behavioral and Distributional Effects of Environmental Policy, pages 159-186 National Bureau of Economic Research, Inc.
  9. Helland, Eric & Whitford, Andrew B., 2003. "Pollution incidence and political jurisdiction: evidence from the TRI," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 403-424, November.
  10. Vernon Henderson, 1995. "Effects of Air Quality Regulation," NBER Working Papers 5118, National Bureau of Economic Research, Inc.
  11. John A. List & Mitch Kunce, 2000. "Environmental Protection and Economic Growth: What Do the Residuals Tell Us?," Land Economics, University of Wisconsin Press, University of Wisconsin Press, vol. 76(2), pages 267-282.
  12. Wayne B Gray, 1997. "Manufacturing Plant Location: Does State Pollution Regulation Matter?," Working Papers, Center for Economic Studies, U.S. Census Bureau 97-8, Center for Economic Studies, U.S. Census Bureau.
  13. Levinson, Arik, 1996. "Environmental regulations and manufacturers' location choices: Evidence from the Census of Manufactures," Journal of Public Economics, Elsevier, Elsevier, vol. 62(1-2), pages 5-29, October.
  14. Carlo Carraro & Gilbert E. Metcalf, 2001. "Introduction to "Behavioral and Distributional Effects of Environmental Policy"," NBER Chapters, National Bureau of Economic Research, Inc, in: Behavioral and Distributional Effects of Environmental Policy, pages 1-12 National Bureau of Economic Research, Inc.
  15. John A. List & Daniel L. Millimet & Per G. Fredriksson & W. Warren McHone, 2003. "Effects of Environmental Regulations on Manufacturing Plant Births: Evidence from a Propensity Score Matching Estimator," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 944-952, November.
  16. Virginia D. McConnell & Robert M. Schwab, 1990. "The Impact of Environmental Regulation on Industry Location Decisions: The Motor Vehicle Industry," Land Economics, University of Wisconsin Press, University of Wisconsin Press, vol. 66(1), pages 67-81.
  17. Kahn, Matthew E., 1997. "Particulate pollution trends in the United States," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 27(1), pages 87-107, February.
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Cited by:
  1. repec:cen:wpaper:12-25 is not listed on IDEAS
  2. Becker, Randy A. & Pasurka, Carl & Shadbegian, Ronald J., 2013. "Do environmental regulations disproportionately affect small businesses? Evidence from the Pollution Abatement Costs and Expenditures survey," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 523-538.
  3. Millimet, Daniel L. & Roy, Jayjit, 2011. "Three New Empirical Tests of the Pollution Haven Hypothesis When Environmental Regulation is Endogenous," IZA Discussion Papers 5911, Institute for the Study of Labor (IZA).
  4. Randy Becker, 2010. "Local Environmental Regulation and Plant-Level Productivity," Working Papers, Center for Economic Studies, U.S. Census Bureau 10-30r, Center for Economic Studies, U.S. Census Bureau, revised Aug 2011.

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